Risk Management for Small Businesses

Why is risk management particularly important for a small business?

• It is not as important as for large businesses

• It helps in avoiding all types of losses

• It is vital due to common types of losses such as theft, fire, flood, legal liability, injury, and disability

• It only helps in preventing theft

What is one of the risks a company might face when conducting business online?

• Decreased market competition

• Infringement on copyrights, patents, or trademarks

• Improved employee efficiency

• Reduced marketing costs

What can be a consequence of businesses being connected to the Internet?

• Enhanced security against data breaches

• Loss of business and productivity due to computer system damage

• Guaranteed increase in sales

• Complete immunity to computer viruses

What type of charges might a company face due to unauthorized use of personal information?

• Charges of innovation and creativity

• Charges of invasion of privacy

• Charges of excellent customer service

• Charges of community service

What is a potential threat to businesses connected to the Internet?

• Increased brand loyalty

• Threats from computer hackers and viruses

• More efficient supply chain management

• Lower operational costs

What is one of the actions businesses should take as they grow and experience changes in operations?

• Ignore changes in human resources

• Incorporate risk management into the core values of the company

• Decrease the frequency of marketing efforts

• Limit production to avoid risks

What should businesses develop to provide early warnings about potential risks?

• A new product line

• Monitoring systems

• A public relations campaign

• A cost-cutting strategy

What is a recommended action for businesses to manage risks effectively?

• Conduct a risk analysis

• Increase distribution challenges

• Reduce human resource activities

• Focus solely on production

How often should businesses perform reviews of their risk management program?

• Once at the start of the business

• Periodically

• Only when a risk is realized

• Never

How many different groups should students pair up in to complete a PowerPoint on articles of business impacted by Risk Management Policies?

• 5

• 6

• 7

• 8